Heineken takes over Kirin Brasil in €1.025 billion deal
Dutch brewer Heineken reached an agreement to acquire the currently loss-making Brazilian breweries of Japanese brewer Kirin Holdings, Heineken announced in a press release on Monday. Heineken, the second largest brewer in the world, will pay 1.025 billion euros in cash and debt acquisition for 12 beer brewing locations, production facilities and the distribution network Kirin Brasil has in place.
The acquisition makes Heineken the second largest brewer in Brazil and will allow the Dutch brewer to sell more drinks across the country, especially the north and northeast. The purchase does not add any additional brands to Heineken's current portfolio of 250 beer labels.
Heineken also believes that the acquisition will help make their name brand and Mexican label Sol Cerveza premium beers across Brazil. The Dutch brewer plans to use the Brazilian distribution network to expand sales of Kaiser, Bavaria, Schin, Amstel and Devassa as "value brands".
"Heineken expects to deliver significant cost synergies from the acquisition through production efficiencies, including logistics and brewery optimization, and through optimizing selling, general and administrative expenses." the Dutch brewery said in the press release.